Apple. Amazon. McDonalds. Louis Vuitton. While these companies may offer a range of services to completely different markets, they have one thing in common: brand equity.
That’s why you can be sure that your hometown little bistro offers tastier, healthier, and cheaper food than your local McDonald’s, but it will never be as popular. That’s why China-based Xiaomi may develop smartphones with better features and longer battery life than the iPhone, but no one you know has one.
That’s why a mediocre handbag can sell for hundreds of dollars more the second someone sticks a Louis Vuitton sticker on it.
As such, it’s no surprise that companies often spend huge chunks of their budget building their brand image.
At its core, brand equity is about how customers perceive a brand rather than the brand’s actual products.
This means that it is essential for companies that their relationship with a customer does not end once the sale is made.
One of the main drivers of brand equity is therefore customer loyalty. It’s no secret that it’s almost always cheaper for a business to retain old customers than to find new ones, so building customer loyalty is crucial.
While rewards programs and loyalty benefits can go a long way in building good customer relationships, new customers will only become loyal customers if they have a positive experience: genuine products, strong engagement, and protection. of the brand are essential.
How do companies build brand equity?
Brand awareness is another key pillar of brand equity, as a strong knowledge and awareness of a brand by customers makes them inherently more likely to trust that brand’s products. The more a brand can make its name known, the more customers will choose it over its competitors.
Brand awareness goes hand in hand with brand associations: what do customers think of when they hear a brand name?
Nike is associated with its unmistakable swoosh, athleticism and high-quality sports equipment. Disney is associated with movies, Mickey Mouse, the happiest place on earth, and capitalism. Amazon is associated with cheap labor and fast deliveries.
Brand associations can be positive or negative, but brands that actively and intentionally work to position their brand with positive associations fare better in terms of sales and reputation.
Finally, brand quality ties it all together by ensuring that customer expectations are met when purchasing a product or service.
Brand quality does not necessarily mean that a product has to be above the competition: it just means that customers need to feel that what they paid for is what they expected from a product. .
A restaurant charging high prices for a premium cut of steak would be expected to cook higher quality food than a quick service family restaurant. If the quality of the meal doesn’t match the higher price, customers will be disappointed.
Brand quality thrives with consistent products, strong service and efficient customer support.
Who is who?
In Australia, there are currently three ASX-listed companies actively trading in this market. Some are product-only, championing the user and producer experience, while others have moved towards greater supply chain transparency and a focus on sustainability.
These companies have their own individual strengths and lead the way in both improving brand equity and improving strategies to protect them.
YPB Group (ASX:YPB)
Founded in 2011, YPB Group Limited (ASX: YPB) develops and sells a suite of product authentication and consumer engagement technologies designed for a world where authenticity triggers engagement and where the value of first-class data portion granted continues to increase.
The combination of YPB’s secret tracer and smartphone authentication technologies with its proprietary Connect platform enables product packaging to become connected. YPB’s technology opens direct, digital and profitable marketing channels between brands and their consumers, while simultaneously protecting against counterfeits and enabling personalized marketing campaigns directly on the scanning smartphone.
The company’s smartphone-enabled offerings prevent counterfeiting and help customers learn more about their consumers to maximize engagement, making it the only ASX-listed company focused on both improving and the protection of brand equity.
YPB is focused on the rapidly growing Australian, Southeast Asian and Chinese markets, with particular interest in dairy products, government identification documents, alcohol brands, FMCG manufacturers, partners global packaging companies and integrators. YPB’s target markets are in the billions of items and growing rapidly.
YPB solutions can be customized to simplify the authentication process for any industry. Exceptional offers include:
The YPB Plotter, a scannable and virtually indestructible microparticle technology invisible to the human eye that can be combined with ink, varnish, plastic, fiber or paper for instant verification.
MotifMicro, a recently launched smartphone-readable microparticle technology, is the first anti-counterfeiting software of its kind and works by detecting patented tracer technology in products. What makes it special is its ability to be downloaded directly to any Android or Apple device through the associated App Store. The availability of the app in such a convenient environment enables businesses to identify counterfeit products and deceptive supply chains, providing much-needed peace of mind and potential cost savings.
ProtectCode Plus, a digital transfer technology printable at scale on HP Indigo, UV inkjet, offset, gravure and desktop laser printers to monitor forged product codes.
MultiSec Shield, smartphone-readable film-based security features provide peace of mind, whether it’s important documents or mass-produced document ID cards such as licenses.
In terms of brand equity, YPB harvests first-party verified insights from its solutions through its Connect® platform, enabling targeted marketing initiatives and unique consumer relationships.
When a user confirms the authenticity of a product through their smartphone, a brand can immediately engage with them, customizing their approach based on the individual’s previous interactions with the brand.
Whether it’s an institution looking to improve document security or a multinational conglomerate looking to increase trust and product awareness, YPB’s bespoke technologies are proven to deliver optimization of long-term brand perception.
The company has served businesses and governments across all industries and markets since its inception.
Security Questions (ASX: SMX)
Security Matters focuses on tracking and tracing supply chains using blockchain technology.
The company’s patented system can mark any physical object with unique, invisible sub-molecular particles, and create a digital twin for it on the blockchain, facilitating real-time quality assurance and reliable accountability of the producer throughout the life of the object.
Security Matters’ mission is to address brand responsibility through global physical asset registration that enables a sustainable economy.
It is currently active in the chemicals, plastics, electronics, mining, fashion, agriculture, and food and beverage industries.
Dotz Nano Limited (ASX:DTZ)
Dotz Nano offers carbon-based molecular technologies for tracking, authentication and anti-counterfeiting. The technologies have no distinct chemical signatures, making them virtually unreplicable for added supply chain protection.
Dotz’s solutions can be integrated into everything from plastics to liquids to cannabis plants, creating unique origin codes for organizations of all sizes.
The company has a global presence in research, production and marketing with distributors in North America, Europe, Japan, China and Australia equipped to meet the unique requirements of each market.
Potential investors in brand protection and capital generation should enjoy sustainable competitive advantages.
Brand-enhancing companies play a fundamental role in the global capitalist system, sharpening the competitive forces that keep markets vibrant and thriving.
If businesses add quality and meaning to the consumer experience and consistently increase brand loyalty, they are arguably essential services wherever commerce takes place.
If companies address the consumer as well as the producer side of the equation, and their technology is designed to glean insights from both parties, they can also benefit from tailored solutions that maximize revenue and strengthen their own associations. positive with customers. .
More importantly, the influence of brands on how individuals express their identity is constantly pointed upwards and to the right. As a secular trend, backed by centuries of positive momentum, its presence is too ubiquitous to ignore. As such, proven companies that help brands gain an edge over competitors offer long-term investment prospects that merit further investigation.